Commitment group (ASX:EDV) released an update on F25 first quarter trading. The company reported stable sales for the quarter. Sales for the 14-week period ending October 6, 2024 were $3.1 billion, up slightly from $3.09 billion in the same period last year.
Endeavor is a leader in the retail and hospitality industries. It owns major retail brands such as Dan Murphy’s and BWS and operates more than 350 hotels across Australia. It provides a wide range of services including beverage retail, hospitality and gaming.
CEO Steve Donohue highlighted the balanced performance of the company’s portfolio. “Endeavor Group reported a stable business performance in the first quarter as cost of living pressures continued to impact consumer spending across our categories. This result demonstrates the value of our diversified portfolio, with moderation in retail sales during the quarter offset by stronger performance in hotels,” he said.
The Hotel segment, which contributes significantly to Endeavor’s revenues, saw sales increase 2.5% to $567 million. Growth was fueled by improvements across all key business areas, including food and beverage, bars, gaming and accommodation, boosted by events such as Father’s Day and football finals. The company has also regained market share in the Victorian gaming sector following recent regulatory changes.
Retail sales remained stable at $2.54 billion, led by Dan Murphy’s and BWS. While in line with the previous year, the retail environment saw heightened promotional activity as consumers sought value deals, impacting profitability. The company expects retail operating EBIT margin for H1FY25 to be between 7.0% and 7.5%, compared to 8.0% in H1FY24.
Endeavor Group has implemented measures to manage cost pressures, such as its endeavorGO optimization program, which delivered $100 million in savings in FY24. Additionally, the company has evolved its Jimmy Brings delivery service into a partnership with Milkrun and has streamlined digital projects through its endeavorX division.
Looking ahead, Donohue expressed optimism for the second quarter, which includes major sales events such as Black Friday and the holiday season. “Our 30,000 team members are committed to ensuring we are the destination of choice for our customers as they gather with friends and family to socialize and enjoy the holiday season,” he added.
Shares are trading 4.65% lower at $4.51.